- Net profit 114.1 million (1HY 2010: 123.9 million)
- Revenue 1,250 million (1HY 2010: 1,135 million)
- Low utilization of large vessels and floating sheerleg cranes
- Order book at 3.0 billion (end-2010: 3.2 billion)
- Good margins on current projects
- Result second half year in line with first half year 2011
"Looking back on the first half and given the challenging market conditions, we are positive about the result. For the first time in years we saw a sharp decline in the utilization of in particular the larger dredging vessels due to the lower volumes of work in the market and our selective contracting policy. However, thanks to the quality of our order book the negative impact was limited. Our recently presented three-year corporate business plan defined the strategic framework for the further development of Boskalis. With the intended acquisition of MNO Vervat, the sale of SMIT Terminals to Lamnalco and the ongoing integration of SMIT we are taking major steps towards implementing this plan. We view the tightend market conditions with lower volumes of work and increased competition as a transitional phase with better prospects for the medium term. Large-scale investment plans in the oil and gas industry as well as global port developments will have a positive impact on Boskalis. We do, however, expect that the recently exacerbated macroeconomic unrest will affect the timing of these investments and are factoring in the possibility that investment decisions in large-scale projects may slip into 2012 and 2013." Market developments
The markets in which Boskalis operates are driven by factors such as growth in world trade, energy consumption, the global population and the effects of climate change. Over the past few years we have been faced with stagnating demand as a result of the cyclical downturn at the end of 2008. At the same time we have seen new production capacity coming onto the market in the past few years. This put pressure on both volumes and margins on new projects and in certain sections of the market. However, recent market studies confirmed yet again that structural growth factors for the medium term remain positive. In several regions of the world clients in various market segments are developing an abundance of new initiatives for new and in many cases large maritime infrastructure projects. This applies in particular to energy and commodity-related projects in South America, West Africa and Australia. The demand for this infrastructure will not be affected by the recent macroeconomic unrest, but the possibility of some of these projects suffering delays cannot be ruled out. For the time being the expectation remains that these projects will come onto the market in the next two years. The demand for harbour towage services is developing positively. Freight volumes are picking up after dropping off in 2009. The further growth of the terminal activities is connected to the completion of new oil and LNG import and export terminals which are expected to come on stream from 2012. Here, too, it cannot be ruled out that the recent turmoil will have a dampening effect on an otherwise positive trend. The development of the salvage market is difficult to predict, given the nature of the activities. Development at Transport & Heavy Lift is in particular dependent on an upturn in the spot markets, especially the offshore spot market, which is not expected to occur before 2012. Outlook
The Board of Management expects that, barring unforeseen circumstances, the result for the second half of the 2011 financial year will come in in line with the first half. Total capital expenditure in 2011 is expected to amount to 300-325 million. Boskalis has reached an agreement regarding the sale of SMIT's terminal and AHTS transport activities to Lamnalco, which is 50% owned by Boskalis. Lamnalco will pay a consideration of around USD 450 million for these activities. Final execution of the transaction is expected to take place at the end of the third quarter of 2011.
|(in millions of euros)
|1 HY 2011
|1 HY 2010
|Result from associated companies
|Earnings per share (in euros)
|end 1 HY 2011
|31 Dec 2010
The Board of Management of Royal Boskalis Westminster will host an analyst meeting on 18 August 2011. This meeting can be followed by means of a live audio webcast starting at 15:00 CET through www.boskalis.com.
>> Click here for the complete half-year report including all financial tables <<
This is an English translation of the Dutch press release. In the event of any disparity between the Dutch original and this translation, the Dutch text will prevail.
Royal Boskalis Westminster N.V. is a leading global services provider operating in the dredging, maritime infrastructure and maritime services sectors. The company provides creative and innovative all-round solutions to infrastructural challenges in the maritime, coastal and delta regions of the world including the construction and maintenance of ports and waterways, land reclamation, coastal defense and riverbank protection. Boskalis offers a wide variety of marine services through SMIT and also has strategic partnerships in the Middle East (Archirodon) and in offshore services (Lamnalco). The company holds important home market positions in and outside of Europe. Boskalis has a versatile fleet of over 1,100 units and operates in around 65 countries across six continents. Including its share in partnerships, Boskalis has approximately 14,000 employees.
For further information please contact: Martijn L.D. Schuttevâer
Director of Investor Relations & Corporate Communications
Telephone:+31 78 69 69 822 / +31 6 200 10 232
Telefax:+31 78 69 69 020
E-mail: firstname.lastname@example.org This press release can also be found on our website www.boskalis.com
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